Thursday’s stab higher failed by $2 to reach a 462.26 voodoo number I’d advertised here, so we ended the week without taking home a short position. The stock barely held above an ‘external’ low at 448.73 on Friday, but the obviousness of this structural all but guarantees that sellers will crush it when the new week begins. That would create a bearish impulse leg on the daily chart, the first since late March. If bears are agitated enough to push the futures below a second ‘external’ low at 431.11 notched on May 7 without any upward corrections, that would double the putative power of the impulse leg. _______ UPDATE (May 27, 6:18 pm}: MSFT’s rally from a too obvious low on Friday would ordinarily have brought a punitive reversal. But I didn’t foresee that DaBoyz would throw the switch to activate short-squeeze conditions. They are already prepping for an ambitious run-up to challenge the old record highs. I have expressed serious doubts they will get there, but I am not about to lay odds. See my chat room comments today regarding Peter Eliades.
MSFT – Microsoft (Last:459.58)
